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Shared Sacrifice in Romney’s World

25 Saturday Feb 2012

Posted by Craig in economy, Politics, Romney, Taxes

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cuts, Detroit, Medicaid, Mitt Romney, speech

The stadium may have been empty but the speech certainly wasn’t.

During Mitt Romney’s speech in Detroit yesterday, he laid out his bold, new economic policy. Massive tax cuts for the top bracket paid for by cutting spending on programs that benefit the neediest of the needy. As Ezra Klein put it:

“When Romney said he “wasn’t concerned about the very poor,” he wasn’t kidding. He’s using the policies they depend on most as a piggy bank for tax cuts.”

Most of what Romney addressed was familiar territory–raising the retirement age, privatizing Medicare, and repealing “Obamacare.” He also called for cutting things like subsidies to Amtrak and Planned Parenthood, which amount to pocket change in the federal budget, and bringing federal worker’s pay down to the same crappy level as people in the private sector.

But the bulk of the spending cuts would come from sending Medicaid back to the states:

“Romney’s real savings come in the next section. He’ll “send Medicaid back to the states and cap that program’s rate of growth,” and then “do the same for other programs, like food stamps, housing subsidies and job training.”

Sending the programs back to the states is a red herring. The key bit for deficit reduction is capping their rates of growth. Which is to say, cutting their rates of growth. Which is to say, cutting them.

What Romney is essentially proposing to do is finance a massive tax cut by cutting Medicaid, food stamps, housing subsidies and job training. In other words, the neediest Americans…will be financing a massive tax cut.”

This is Romney’s idea of shared sacrifice:

“My plan for America requires real leadership. And it calls for sacrifice. It doesn’t require a leader to promise bigger and bigger benefits, and something for nothing. Let me underscore that. It doesn’t require a leader to promise bigger and bigger benefits, and free stuff. It requires a leader … to call for sacrifice.”

Here’s who would bear the brunt of that sacrifice (BCCA is an acronym for Breast and Cervical Cancer Prevention and Treatment Act that allows states to provide early access to Medicaid to women with cancer).

Here are the Medicaid dollars spent per beneficiary:

So in order for cuts in the scope of what Romney is proposing to have any substantial affect, here’s what would have to happen:

“…[T]he amount we spent per blind or disabled person, or per elderly person, is much, much more than the amount we spend per child or adult. This means that if we really want to cut Medicaid spending, and we want to do it on the backs of adults or children, we will have to drop many, many more of them to make a real impact on spending.

If we cut 1 million elderly from the Medicaid rolls, we reduce Medicaid spending by about 5%. If we cut 1 million adults, however, we reduce Medicaid spending by only 1%. We need to cut 5 times as many adults. If we want to cut Medicaid spending by 10%…we’d need to drop more than 10 million adults from Medicaid. That’s almost three-quarters of all of them. If we want to cut overall Medicaid spending by 20%, then we’d need to drop all non-elderly adults, including all pregnant women, as well as about 10 million kids, or more than a third of them.

So what will we do? Should we cut some of their benefits instead? Again, look how little we already spend on children and adults. If we cut spending on every child and every non-elderly adult by 25%, that will reduce overall Medicaid spending by less than 8%.

Or do you want to go after the money we spend on the blind and disabled? Women with breast cancer or colon cancer? The elderly?”

Right on, Mitt. Let’s take all that “free stuff” away from all those “something for nothing” freeloaders like the blind, the disabled, the elderly, and women with cancer. They’ve had it too easy for too long. It’s high damn time they sacrificed something so your buds can have another yacht to water ski behind or another vacation home.

Obama Has Been Consistent on Social Security—He Wants to Cut It

08 Friday Jul 2011

Posted by Craig in Deficit, Obama, Politics, Social Security

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1997, Alan Simpson, cuts, debt ceiling talks, Debt Commission, Erskine bowles, Jay Carney, milk cow 300 million tits, Newt Gingrich, preserve, President Obama, privatization, Social Security, strengthen

After the news broke yesterday about President Obama putting Social Security cuts on the table in the debt ceiling talks, the White House immediately went into CYA mode:

“White House spokesman Jay Carney commented on the reports concerning Social Security cuts Thursday morning.

“There is no news here,” Carney said. “The President has always said that while social security is not a major driver of the deficit, we do need to strengthen the program and the President said in the State of the Union Address that he wanted to work with both parties to do so in a balanced way that preserves the promise of the program and doesn’t slash benefits.”

Carney is right about one thing, there is no news here. The president has been consistent in his plans to “strengthen” and “preserve” Social Security. Like appointing Alan Simpson and Erskine Bowles co-chairs of the so-called Debt Commission, which turned much of its focus to cutting strengthening Social Security by raising the retirement age (a benefit cut) and re-figuring the COLA (another cut). Never mind that SS has nothing to do with either the debt or the deficit. Simpson has made no secret of his contempt for Social Security and its recipients:

“I’ve made some plenty smart cracks about people on Social Security who milk it to the last degree. You know ’em too…We’ve reached a point now where it’s like a milk cow with 310 million tits!”

And it was Erskine Bowles who, while serving as Bill Clinton’s Chief of Staff in 1997, was in the process of negotiating a deal with then-Speaker Newt Gingrich which included the partial privatization of Social Security before the Monica Lewinsky scandal broke and blew (so to speak) that out of the water.

Nothing new to see here. Move along.

Shared Sacrifice, 2011 Style

06 Wednesday Jul 2011

Posted by Craig in budget, Medicaid, Medicare, Obama

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$300 million, budget deficit negotiations, corporate jet owners, cuts, elderly, health care, Medicaid, Medicare, Obama administration, poverty, tax break

In light of this:

“Before Medicare was implemented—as a social-welfare program designed not just to deliver care but to poverty—one in five Americans lived below the poverty line. After the program was implemented, and after related “War on Poverty” initiatives were developed, that number was cut almost in half. Poverty among seniors dropped by two thirds.

Why? Before Medicare, millions of elderly Americans could not afford to buy healthcare. They did not have access even to basic care. When they needed treatment for the inevitable ailments that are associated with aging, they and their families spent down what meager savings that retained and a stumble into poverty soon followed.

Medicare broke the vicious cycle for the elderly, as Medicaid did for disabled Americans and their families. “For more than four decades, Medicare has kept millions of our senior citizens from living out their days in poverty,” explains one of the program’s steadiest champions, Congresswoman Tammy Baldwin, D-Wisconsin.

Medicare continues to serve the purpose for which it was created. Indeed, so much good continues to come of this program—and of Medicaid—that it is difficult to imagine why anyone would seek to dismantle the program.”

What the hell is up with this?

“Obama administration officials are offering to cut tens of billions of dollars from Medicare and Medicaid in negotiations to reduce the federal budget deficit, but the depth of the cuts depends on whether Republicans are willing to accept any increases in tax revenues.

Administration officials and Republican negotiators say the money can be taken from health care providers like hospitals and nursing homes without directly imposing new costs on needy beneficiaries or radically restructuring either program.”

Yeah, right. Now tell me the one about Goldilocks and the bears.

“Before the talks led by Vice President Joseph R. Biden Jr. broke off 12 days ago, negotiators said, they had reached substantial agreement on many cuts in the growth of Medicare, which provides care to people 65 and older, and Medicaid, which covers lower-income people. Those proposals are still on the table when Congress reconvenes this week, aides said, and are serious options that Democrats could accept in exchange for Republican concessions that raise revenues.”

So in exchange for tens of billions of cuts to Medicare and Medicaid Republicans might “concede” on the much over-hyped tax break for corporate jet owners, which amounts to a whopping $300 million a year.

Shared sacrifice, 2011 style.

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